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Indian MOD Data Network Project Update: PO and Bank Guarantee received

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update with respect to the large scale supply of FFT’s SecureLink technology to protect data communications cables for the Indian Ministry of Defence (IMOD):

  • Ava has received and accepted a Purchase Order for US$11.9m (A$17.5m) of licencing income from its in-country manufacturing partner, SFO Technologies Private Limited (SFO).
  • Ava has received a US$2.1m (A$3.1m) Bank Guarantee from SFO as security for SFO payment obligations to Ava under the contract.
  • Manufacturing of the first batch of 600 systems, representing circa 25% of total contract volume, has commenced.
  • IMOD Factory Acceptance Test (FAT) has been scheduled for the first 200 systems in mid December 2019. It is expected that deliveries of systems will commence within 30 days of successful completion of the FAT. 
  • Ava expects additional revenue from a subsequent 7-year spares and maintenance contract for this project, which has an estimated value of a further US$3.4m (A$5.0m).

Ava Group Chief Executive, Scott Basham said, “The receipt of this A$17.5m purchase order and A$3.1m bank guarantee are fantastic milestones for Ava in relation to this large scale project, and we are pleased that the manufacturing is now well underway for the first significant portion of the program. 

Our production and engineering staff are working hand in glove with the SFO team, providing technical advice and guidance on site in India, as they ramp up production volumes for the first tranche of systems, to ensure the smoothest possible execution of the manufacturing plan, and the successful achievement of the first FAT with the end user in mid-December. 

Ava’s Future Fibre Technologies business is clearly a global leader in the provision of best practice cybersecurity solutions for the protection of critical national data network infrastructure, and this 40,000km data network project for the Indian MOD is a clear testament to that fact.

Ava remains on track to achieve our guidance of A$9m or more for Q2, and A$19m or better for H1 FY2020 for the underlying business – excluding any contribution from the Indian MOD project – and this purchase order and bank guarantee now lock us in for a fantastic FY2020 and beyond.”

Please refer to Note 1 below.

About the Ava Group 

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world. 

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics (Ava Global) and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets. 

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users. 

Note 1

Further information on the IMOD project is available via previous market announcements (see www.asx.com.au)

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

AVA Appendix 4C

  • $1.6m Quarter on Quarter improvement in operating cash flows
  • Underlying business now on sustainable footing for record profitability
  • Consolidated cash position of $3.6m

Click here to read the full announcement

Ava Risk Group Limited (ASX: AVA), a market leader of risk management services and technologies, today released its Appendix 4C for the quarter ended 30 September 2019. 

Summary of Results

Revenue growth during the quarter exceeded guidance with group revenues of $9.8m.

This growth along with operating efficiency strategies delivered improved returns in Q1 FY2020 with EBITDA of$1.2m, an approximately 335% improvement on the same period last year.

Net operating cashflows in the quarter were positive $0.9m an improvement of $1.6m compared to the previous quarter. Cash receipts from customers were up $2.2m on the previous quarter to $9.4m on higher sales.

At 30 September 2019 the Company had $3.6m cash at bank, an increase of $0.5m since 30 June 2019.

Excluding cash inflows from customer payments, and other sources, gross operating cash outflows are forecast around $8.6m for next quarter.

The Technology Division contributed $5.5m of revenue for the quarter and $1.2m in EBITDA with average gross margins of 72%. It is poised for strong growth in the current financial year, with an order backlog at 30 September 2019 of circa $4.3m.

The Services Division contributed $4.4m in revenue for the quarter and $0.2m EBITDA with an average gross margin of 25%. It is well positioned for consistent growth in FY2020 after recently securing further new customer contracts.

Importantly, the above results reflect improvements in the core business and do not include any material revenue from the large-scale Indian MOD (IMOD) contract (circa $17m) already announced to the ASX.

Streamlining Business for Future Growth

During Q1 FY2020, the Technology Division relocated its BQT Solutions (BQT) business unit’s production and manufacturing operations of all Access Control Readers and Cards, and Biometric Terminals to its BQT locking production facility in Auckland, New Zealand. 

Sydney based Sales and Software R&D staff have been relocated to a new appropriately sized office.

This consolidation brings efficiencies to the business, generated from manufacturing scale and greater optimisation of underutilised production capacity at the Auckland site. 

Subsequent to this restructuring, the business also closed the BQT administration office in the UK, and realigned its BQT sales operations both there, and in the Middle East, to take advantage of newly appointed Distribution partners.  Cost savings from these changes are expected to positively benefit the underlying business by more than A$1m going forward.

The Technology Division also commenced the rollout of its new Go-To-Market strategy in its Future Fibre Technologies (FFT) business unit, having signed Distribution Agreements with more than a dozen new channel partners in the developing markets of Latin America and Africa, with further new agreements pending completion in Q2 FY2020.  These new channel partners will provide Ava’s Technology Division with increased opportunities to win a greater share of local sales, as well as giving it an enhanced level of intimacy via these new partners with local System Integrators and End Users to win larger scale deals.

Q2 & H1 FY2020 Forecast

Total revenue for Q2 FY2020 is forecast to be in excess of A$9.0m, with total revenue expected for H1 FY2020 to be more than A$19m, excluding any contribution from the IMOD project.

With the company’s growth and operating efficiency strategies now delivering improved returns to the business, the Ava Group remains buoyant about delivering record revenues and profits in FY2020 and beyond.  

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

Click here to read the full announcement

About Ava Group

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

For further information contact: Leigh Davis leigh.davis@theavagroup.com

Note 1

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified.

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Q1 FY2020 Results: Profitability & Record Revenues

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update:

  • Revenue growth achieved in Q1 FY2020 with group revenue of $9.9m.
  • Growth and operating efficiency strategy delivers improved returns in Q1 FY2020 with EBITDA of $1.2m, an increase of approximately 335% year on year.
  • Cash at Bank as at 30 September 2019 increased to $3.6m, an increase of $0.5m since 30 June 2019.
  • The Technology Division contributed $5.5m of revenue in Q1 and $1.0m in EBITDA with average Gross Margin of 72% and is poised for strong growth in the current financial year, with an order backlog at 30 September 2019 of circa $4.3m. 
  • The Services Division contributed $4.4m of revenue in Q1 and $0.2m in EBITDA with an average Gross Margin of 25% and is well positioned for consistent growth in FY2020 after recently securing further customer contracts.
  • Importantly, the above results reflect improvements in the core business and do not include any material revenue from the large-scale Indian MOD (IMOD) contract (circa $17m) already announced to the ASX.
  • Whilst the first initial purchase orders for the IMOD project have been received by Ava’s Technology Division, material revenues from the IMOD contract are expected to commence in late Q2 FY2020 following production by our in-country manufacturer and Factory Acceptance Testing by the end user. We anticipate receiving a revised delivery schedule in November 2019 and will provide an update via the ASX as appropriate.

Ava Group CEO, Scott Basham, said “I am pleased with the progress we have made in streamlining our operations to deliver positive and profitable growth. With increasing revenues, improving and sustainable gross margins, and a cost base that is now well aligned to our growth plans, the Ava Group is well positioned to deliver profitable growth for our shareholders in FY2020 and beyond”. 

Please refer to Note 1 below.

About the Ava Group 

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world. 

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics (Ava Global) and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets. 

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users. 

Note 1

Q1 FY2020 financials are unaudited

Further information on the IMOD project is available via previous market announcements (see www.asx.com.au)

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Introducing Aura IQ – The most advanced predictive conveyor health monitoring system

Conveyor systems play a crucial role in underpinning efficiency, and ultimately profitability, in bulk handling operations globally. Conveyor maintenance has traditionally been a real problem, with conventional methods of advanced conveyor failure detection often unreliable, subjective, time-consuming and labour intensive. But that’s all about to change.

The release by Future Fibre Technologies (FFT), a business within the Technology Division of AVA Risk Group Limited (ASX:AVA), of its newAura IQ solution, is set to revolutionise conveyor health monitoring, by using real-time data to optimise production and on-site performance, enhance occupational health, hygiene and safety management, and introduce exciting new predictive maintenance and support capabilities to asset management.

Aura IQ harnesses the power of FFT’s award winning fibre optic detection and sensing technology platform (FFT TM Aura Ai-2), and is combined with development partner, Mining3’s advanced signal processing algorithms and predictive analytics, to acoustically monitor and assess conveyor health via the cloud-based analysis, reporting and alerts.

Aura IQ Cloud and IoT Network

The Aura IQ Cloud and Internet of Things (IoT) Network solution provides a means to wirelessly connect one or more Aura IQ Edge Servers to a central cloud reporting and analytics platform. This enables alerts and reports from conveyor assets – located anywhere in the world – to be accessible on any Internet enabled device in near real-time, with no specialist software or equipment.

Conveyor Health Monitoring and Intelligence Platform

Providing deeper insights to maintenance technicians, site personnel, regional operational hubs and global headquarters, conveyors are automatically connected to the cloud via an Industrial Grade Wireless IoT gateway, enabling daily asset reliability reports from every conveyor, at every site around the world.

How it works

Aura IQ is a low cost, highly reliable solution for monitoring, measuring and detecting conveyor roller health – with no power required at the point of measurement.

Aura IQ transmits a series of short, laser pulses along a single fibre optic cable retrofitted along the length of a conveyor.  Acoustic disturbances from the conveyor system cause microscopic changes in the backscattered laser light that is then categorised into known parameters.  Data is simultaneously gathered from every metre of the conveyor and processed by Aura IQ to pre-emptively alert operators, either on or off-site (in operational hubs or control rooms), to potential failures before they happen. This includes:

  • Detecting a broken ball or a cracked cage in a ball race
  • Observing and tracking idler bearings as they progressively wear, and
  • Predicting potential bearing seizures and prioritising roller replacements at the next maintenance shut down.

Commenting on the launch of Aura IQ, Ava Risk Group Limited’s Head of Innovation, Extractives and Energy Andrew Hames said that distributed fibre optic acoustic monitoring is the way of the future for conveyor health monitoring.

“This is a game changing solution which will optimise conveyor performance and create substantial cost savings for operators. A typical conveyor can have up to 7,000 bearings per kilometre, which means 7,000 potential points of failure. Aura IQ can monitor the condition of every conveyor roller – eliminating the need to “walk the belt” and allowing a controlled and scheduled plan of roller maintenance and replacement to be put in place. With Aura IQ, costly delays from roller failure are a thing of the past, while less manual involvement reduces health and safety risks. Taking a formalized and pro-active approach to asset health monitoring means data can also be used to optimize maintenance strategies – reducing reliance on costly manual inspections and demonstrating ongoing compliance with operational standards,” Mr Hames says.

Having successfully completed surface and sub-surface testing with some of the world’s largest mining houses and at bulk material handling facilities, Aura IQ now available for sale globally.

-ENDS-

About Ava Group

The Ava Group, comprising world leading technology businesses Future Fibre Technologies (FFT) and BQT Solutions (BQT), is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world. 

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users

For more information:

Ava Appendix 4C

  • $1.2m Quarter on Quarter improvement in operating cash flows
  • Strong sales order backlog at 30 June supports continued improvement in operating cashflow
  • Initial Indian MoD orders received
  • Consolidated cash position of $3.1m

Click here to read full announcement

Ava Risk Group Limited (ASX: AVA), a market leader of risk management services and technologies, today released its Appendix 4C for the quarter ended 30 June 2019. 

Reduced operating cash outflows in the quarter resulted in a $1.2m improvement in net operating cash flows compared to the previous quarter, with negative net operating cash flows $0.7m for the quarter. Cash receipts from customers were down $0.2m on the previous quarter to $7.2m.

At 30 June 2019 the Company had sales orders in hand (backlog) in excess of $6m, and $3.1m cash at bank.

Excluding cash inflows from customer payments, and other sources, gross operating cash outflows are forecast around $8.6m for next quarter.

Ava Group Chief Executive, Scott Basham said: “Following our recent capital placement in May, Ava has appropriate levels of cash available to meet it’s near term working capital needs and is well positioned to capitalise on our strong base of leading products, and a large order book to support a greatly improved and profitable FY2020”.

The delay of inflows originally expected for the Technology Division from the Indian MoD order, has impacted short-term working capital. This was addressed with the business completing an equity placement in May for $3.1m, net of transaction costs.

The business continues to take action to reduce overhead by streamlining and consolidating particular parts of its operations, as part of an ongoing plan to further right size our cost base, and diligently manage our working capital.  The business is fundamentally well positioned for growth and future success, with a strong backlog of customer purchase orders received, in excess of $6m at 30 June 2019. 

The Technology Division continues its efforts in expectation of negotiations being finalised with a major overseas customer for a significant (5 year) long term order to deliver large-scale fixed monthly quantities of one of our world-leading and award-winning locking products.  When completed, this order will require a sizable expansion of specific parts of our existing production capabilities to meet not just the supply demands of this order, but the expectations of similar large-scale orders from elsewhere around the world for this unique product.  This specific order will significantly change the underlying size of the business and will create strong profitable revenue streams for the company going forward in FY2020 and beyond.   

The Technology Division is conducting an industry launch of our new Aura IQ product for conveyor belt assurance monitoring in August 2019. The first customer orders have been received, and installations are underway. The Aura IQ solution opens up a new $300M+ revenue market opportunity for the Technology business. 

The Services Division has continued its strong sales growth with YoY growth in sales of over 100% for FY2019. Profitability of the division improved by nearly $1.0m compared to the prior year and the business unit was EBITDA positive during H2 FY2019. Business development activity during H2 FY2019 has resulted in an increase in the gross sales pipeline to over $90m (previously $70m) with a number of key tenders forecast to be awarded in Q1 FY2020. As well as growth from new accounts, Ava Global continues to experience growth across all of its key accounts.

Total revenue for Q1 FY2020 is forecast to be in excess of A$9.0m.

Ava Group continues to be confident of increasing its revenues and delivering profits in FY2020 and beyond.   

Click here to read full announcement

About Ava Group

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

For further information contact: Leigh Davis leigh.davis@theavagroup.com

Note 1

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified.

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Services Division Update

  • YoY Strong revenue growth continues
  • H2 FY2019 profitable
  • Industry veteran, Mike McGeever appointed non-executive Chairman of Ava Global DMCC LLC

Ava Risk Group Limited (“AVA”) is pleased to announce the following update for its Services Division, Ava Global DMCC LLC (“Ava Global”).

Ava Global started providing international valuables logistics services in August 2016 and has experienced significant growth since its inception. Key recent highlights include;

  • FY2019 Services revenue was approximately $16.0m, representing a 117% increase over prior year on a full year basis, having delivered 127% growth in FY2018 over previous year.
  • EBITDA has improved by circa $1.7m (on a full 12 month basis) compared to FY2018 following a similar improvement in the previous financial year. The division became profitable in H2 FY2019 and is expecting to continue its growth trajectory in FY2020.
  • H2 FY2019 business development activity has resulted in an increase in the gross sales pipeline to over $90m (previously $70m) with a number of key tenders forecast to be awarded in Q1 FY2020. As well as growth from new accounts, Ava Global continues to experience growth across all of its key accounts on a quarterly basis, reflective of Ava Global’s strong commitment to customer service and dedicated account management across the precious metals and banknote sectors.
  • Ava Global has received third party approaches in respect of potential corporate development interest in acquiring an equity position within Ava Global. These discussions are not yet at a stage where further disclosure would be appropriate or required. The Company remains committed to grow the Services Decision and will update on progress as appropriate.

The Ava Group continues to deliver secure services to international governmental agencies and corporate clients at the forefront of Security Technology and International Valuable Logistics through its Technology and Services Divisions. Having strengthened the Group’s focus on Technology with the appointment of Group CEO, Scott Basham, it is clear with recent announcements that AVA possesses, and is in the vanguard of supplying, in-demand solutions.

Mike McGeever has been appointed non-executive Chairman of Ava Global and will continue to serve as a non-executive Director of AVA. This will bring additional hands on experience and an extended contact base to the Services Division whilst allowing Chris Fergus, CEO Services Division, to continue to grow the business from a profitable H2 FY2019 towards its aggressive growth targets for FY2020. 

 Mike’s record of having grown UAE based Transguard Group into one of the largest Security and Cash Management businesses in the Region will ensure opportunities from within his extensive network of contacts will further enhance Ava Global’s growing pipeline of opportunities.

Given the historical trends, improving pipeline and recurring business from existing clients, AVA has a strong outlook for the Services Division in FY2020.

About the Ava Group

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets via Ava Global. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

Contact

For more information on this announcement please contact Leigh Davis, CFO leigh.davis@theavagroup.com    

Note 1

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified.

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

AVA secures further FFT Aura Ai-2 Oil & Gas contracts valued at A$716K

  • New Aura Ai-2 Oil & Gas contracts in the South Pacific, India & Middle East
  • Existing FFT customers adopting next generation Aura Ai-2 technology
  • FFT clear industry leader for protecting high value assets in challenging operational environments

AVA Risk Group Limited (ASX: AVA) announces that FFT Aura Ai-2 has been selected to protect critical Oil & Gas infrastructure in the South Pacific, India, and the Middle East with contract awards of A$716K being received this week:

  • A long standing multinational Oil & Gas customer, with extensive global operations, including in the South Pacific, has chosen to upgrade an existing FFT Secure Fence system to the lastest generation of FFT’s Aura Ai-2 platform.  The upgrade decision was made to leverage Aura Ai-2’s superior operational performance capabilities, all of which are needed for this very demanding jungle site.
  • A new project in India, being the third order for Aura Ai-2 recently placed on FFT by a large national Oil & Gas player, this time to protect new refinery infrastructure and operational facilities.
  • A new order for FFT’s Aura Ai-2 product, subject to Australian Federal Government Defence Export Control Office approvals, to protect one of the world’s largest oil fields in a very demaining desert environment within a highly sensitive security setting in the Middle East region.

These globally important contracts further confirm FFT as the preferred Perimeter Intrusion Detection System provider for nationally important, critical infrastucture applications.  The Aura Ai-2 platform’s unrivalled high-sensitivity detection, location accuracy, cut resilience capability, low nuisance alarms, and the longest linear range of any solution currently available, offer superior benefits and value for owners and operators of key vital assets.

Commenting on the announcement, AVA Group CEO Scott Basham says:

“FFT’s fibre optic perimeter intrusion technology has long been used to protect critical infrastructure in the world’s harshest conditions. Desert or jungle, hot or cold, wet or dry, it is tremendously pleasing to see that FFT products are continually specified as the ‘solutions of choice’ by System Integrators around the globe regardless of the environmental conditions.  We are thrilled that these globally important, multinational customers, will all be able to experience the benefits and value of Aura Ai-2 first-hand.”

About the Ava Group

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

Contact

For more information on this announcement please contact Leigh Davis, CFO leigh.davis@theavagroup.com    

Correction to FY2019 Guidance & FY2020 Outlook

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) advises of a correction to today’s earlier announcement titled “FY2019 Guidance & FY2020 Outlook”. 

The release stated in the final bullet point on page 1 that “The Ava Group expects record revenues of $9.0m-$12.0m during Q1 FY2019…” This should have read “The Ava Group expects record revenues of $9.0m-$12.0m during Q1 FY2020”.

The company apologies for the error.

About the Ava Group 

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world. 

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets. 

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users. 

AVA secures Oil & Gas related contracts valued at A$629K

  • New contract for FFT’s Aura Ai-2 to protect critical pipeline infrastructure in India
  • Maintenance support contracts signed with two long-term FFT customers
  • Support services and parts for FFT Secure Fence and FFT Secure Pipe deployments

AVA Risk Group Limited (ASX: AVA) is pleased to announce that its latest generation Aura Ai-2 technology has been selected to protect critical pipeline infrastructure in India.

The rollout, for a leading Indian Oil & Gas supplier, will be deployed on a buried pipeline with the implementation of Aura Ai’s  advanced detection capability expected to commence in Q1FY2020 and be completed by Q3 FY2020.

This new contact within the large Oil & Gas market segment follows the 25 June 2019 announcement of Aura Ai-2 being selected to protect the extended perimeter of a petrochemical facility located in the US Gulf Coast region and confirms the wide application of FFT’s technology across critical security functions in this important sector.

As part of its global push to increase its recurring revenue, AVA is pleased to announce that it has secured maintenance support contracts with two of its existing customers in India.  The maintenance contracts are for the provision of support services and spare parts for installed FFT Secure Fence and FFT Secure Pipe systems deployed to protect critical infrastructure across India, including major Oil & Gas assets and facilities.

Commenting on the announcement, AVA CEO Scott Basham said:

“The order to protect a critical pipeline in India is reflective of our focus on providing high-end, high-value applications with our world leading Aura Ai-2 technology.  Customers that have strategic, nationally important infrastructure, see the clear value that our Aura Ai-2 platform brings with its unrivalled high-sensitivity detection, location accuracy, cut resilience capability, low nuisance alarms, and the longest linear range of any solution currently available”.

“The provision of high-quality service and support capabilities is an integral part of our focus on delivering value to our customers around the globe. To meet this growing demand, we are rolling out some new and innovative service support offerings that will further allow us to diagnose and optimise deployed systems and respond more efficiently to calls for assistance from our large and growing  customer base.”

About the Ava Group

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

Contact

For more information on this announcement please contact Leigh Davis, CFO leigh.davis@theavagroup.com    

FY2019 Guidance & FY2020 Outlook

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update:

  • Ava Group FY2019 revenue is expected to increase by approximately 160% year on year to $31.5m.
  • The Technology Division is poised for strong growth in the new financial year, with an order backlog at 30 June 2019 of circa $6.0m. 
  • FY2019 revenue is lower than expectations due to the receipt of a number of orders in late June 2019 and the timing of production and dispatch for those orders received to be recognised as revenue in FY2019. To this end, Technology Division FY2019 revenues are expected to be circa $15.5m, $2.5m below expectations.
  • The $2.5m bridge of late orders relate primarily to key US Government and Oil & Gas critical infrastructure sites (refer to company announcement dated 25 June 2019) and two major Middle Eastern aviation related critical infrastructure installations (Refer to company announcement dated 28 June 2019). 
  • The delayed orders received in late June are expected to ship during Q1 FY2020, and the bulk of remainder of the order backlog will be delivered during FY2020.
  • The first initial orders have also been received by Ava’s Technology Division in relation to the Indian MoD project, to support the preliminary Factory Acceptance Testing requirements of this major project.  Some limited delays are being experienced as the prime contractor completes their review of the data network fibre optic system design and finalises the quantity of systems needed for the project. This has delayed the finalisation of Ava Group’s in-country partner’s production planning as a result. No formal advice has been provided as yet on either the new final production numbers, nor the prime contractor’s plans to mitigate this delay to still deliver the project on time through accelerated production and delivery schedules. 
  • The Services division revenue guidance is circa $16.0m and the division is expected to be EBITDA positive during Q4 FY2019.
  • The Ava Group expects record revenues of $9.0m-$12.0m during Q1 FY2019, comprising $2.5m-$3.5m from orders on hand, $3.0m – $4.0m of new Technology Division orders, and $3.5m – $$4.5m in Services Division revenues.

About the Ava Group 

The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world. 

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets. 

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users. 

Note 1

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.